Jesse Rogers explains seven price-action trading concepts: fair value gaps, inverse fair value gaps, engulfing candles, swing points, swing failure patterns, market structure, and structure breaks. He runs through each one quickly and asks which you use most.
The seven most important trading concepts in less than 30 seconds. Number one fair value gaps when the market moves with such force in a candle, that leaves a gap between the one before it and the one after it, these levels act as support and resistance. Number 2 inverse fair value Gaps When a candle trades into a gap and closes through it, this shows that the market is reversing. 3. Engulfing candles when one candle's body completely swallows the previous candle's body, this shows that one side just completely took control of the market. 4. Swing points Swing highs and swing lows are where lots of traders are looking to trade. The way that price reacts to these levels gives you high quality trades. 5. Swing failure patterns when the market trades into a high or a low but fails to follow through, this shows that the market is reversing. 6. Market structure higher highs and higher lows are a bullish market. Lower highs and lower lows are a bearish market. Simple but powerful and 7. Structure breaks when price breaks through a high or low with force and leaves a fair value gap, this tells us that the market is likely to continue in that direction. Master these seven concepts and you will understand everything you need to trade profitably. Comment below which ones you use the most.
